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Feedlot cattle trade at lower prices this week
Live cattle contracts settled unchanged to 47 points higher on the Chicago Mercantile Exchange on Friday. Futures were moderately lower much of the session, pressured by profit taking and cash uncertainty. August finished 12 points higher at 84.70, and October was up 35 at 90.20. Boxed beef cutout values were weak to lower on light demand and moderate offerings. Choice beef was down .62 at 141.64; select was 1.08 lower at 135.24.
Feeder cattle ended the session 5 to 37 points higher. Most traders seemed content to hold current positions until next week when a whole new month is on the books. Overall trade activity remained very light. August was up 22 points at 102.35, and September settled 27 higher at 102.55.
Feeder cattle receipts at Missouri auctions this week totaled 21,966 head. Compared to last, week steers and heifers trended unevenly steady, with the trade ranging from 2.00 higher to 2.00 lower, with no solid direction on any one weight class. Feeder cattle medium and large 1 and 1-2, steers weighing 500 to 600 lbs 97.00 to 120.25, 7 to 8 weights 94.00 to 109.75. Heifers weighing 500 to 600 lbs traded at 90.00 to 109.75 and 7 to 8 weights from 85.00 to 100.50 per hundredweight.
The weekly cattle slaughter was estimated at 639,000 head, 24,000 more than last week, but 23,000 less than last year. A moderate to active cattle trade with moderate demand developed in Kansas on Friday. Compared to last week, live sales were 1.00 lower at 82.00 and dressed sales were 2.00 lower at 130.00. Trading was light in the Texas Panhandle with light to moderate demand. Live sales were 1.00 lower at 82.00. Dressed sales in Nebraska were reported by USDA Mandatory at 131.00, 1.00 to 2.00 lower than last week, and live sales at 82.50. Dressed sales in Iowa/Minnesota were 1.00 lower at 131.00, and live sales 1.00 to 2.00 lower at 82.00.
The weekly hog slaughter was estimated at 2,104,000 head 74,000 more than last week, and 11,000 greater than a year ago. Terminals barrows and gilts were 1.00 to 2.00 lower in a limited test from 32.00 to 38.00. Missouri direct base carcass meat price was steady from 49.00 to 52.00. Iowa/Minnesota hogs closed 1.14 lower at 52.40 on a carcass basis, the West was also down 1.14 at 52.59, and the East closed .53 lower at 52.49. Saturday kill is estimated at 40,000 head by USDA as packers continue their aggressive chain speed. Packers reportedly have adequate inventory to start the week. Monday’s cash bids are expected to be lower.
Lean hogs settled 35 to 140 points higher, but the foundation for the upward rally was lacking, leaving most of the upward shift to be mainly associated with late week and end of the month position squaring, according to DTN’s Rick Kment. August settled 140 points higher at 56.02, and October was up 130 at 53.90. Pork trading was slow to moderate, with light to moderate demand and offerings. The lean carcass cutout value was up .32 at 59.41.
Pork bellies settled 125 points higher to 90 lower on strong buying support with the spot August posting the sharpest gains. Again, most of the activity was likely associated with end of the month position squaring rather than a shift in overall market fundamentals. August was up 125 points at 62.25 and February was 12 lower at 81.25.
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